Monday, June 30, 2008

Surprises in-store

In-store marketing is increasingly turning into a virtual last mile for marketers, which could play a major role in their long term success

Walk into Wal-Mart and chances are you will come across a TV showing how Listerine Agent Cool Blue pre-brushing rinse turns plaque blue. This is not a regular commercial that you would see on TV. Rather it’s an “infomercial” that is custom-made for retail stores and chances are after seeing it you might just pick up a bottle of Listerine – just to give it a shot.Reebok stores around the country recently carried out a fitness test for people who walked into their stores. The customers were asked some questions and based on that the retail attendants mapped their fitness levels and even gave the customers suggestions to improve their level of fitness. This Diwali, Planet M placed kiosks in its music stores from where customers could download songs.A 34-feet long Heritage Wall greets you in Bangalore. Its touch-sensor links make it a virtual scrapbook that depicts decades of history of Levis. Marketing has a new baby and it’s being touted as the hottest new medium. You may see it dangling from the ceiling or pasted on the floor or being flashed on TV screens inside shops or maybe even on the trolley carts. Its importance is in fact growing almost at the same pace as that of the internet. It’s called “mall marketing” or “shopper marketing.” “In-store marketing” is the latest way in which marketers are trying to reach the wallets of consumers.

The world’s largest advertiser Procter & Gamble has cut down part of its ad-spend on TV and increased its spending on in-store marketing/advertising. P&G spends at least $500 million annually on shopper marketing today.Krrish movie merchandise was sold exclusively through Pantaloon stores with the assistance of in-store advertising.Today, thanks to retail chains and retail becoming more and more organised, the complete endeavour of shopping is changing. Most of our purchases today are unplanned and impulsive. Shopping is no more a chore but an experience and retailers are going all out to make it as pleasurable for the shoppers and as profitable for them! This is the “last mile”. It’s the last chance marketers have to make a sale and it’s proving to be the most fruitful “last mile”. After all, a shopper inside a retail store is most prone to buy. Research, too, has proved that more than 70% of purchase decisions are made inside the store. So chances of an advertisement being seen in-store and causing a sale is more than an ad seen “in-home” or elsewhere. Not surprising, then, that “In-Store-TV” is becoming so popular now-a-days, where content is made specifically to suit the needs of the retail-chains and the customers. Wal-Mart TV today is probably more influential than regular TV. According to a T. N. S. survey done in 2005, after seeing ads on Wal-Mart TV (inside Wal-Mart stores), 15% people purchased the product the same day, proving that Wal-Mart TV drives significantly higher motivation levels than advertising for similar brands on in-home TV. Traditional media like TV and press have got too cluttered and customers have learnt how to avoid the ads here. In-store advertising seems to work wonders for marketers.

It’s a whole new world in-store for youGone are the days when cardboard danglers were the most novel way to promote your products in-store. Retail store design is a whole new medium. Intelligent retail store designs are actually improving sales. Titan discovered that after trying seven or eight watches, the customers were a little hesitant to ask the salesboy for the 9th one. So they designed a card reader which was given to every customer who entered the store. He could record the codes of these watches and once he was done, he would be presented his collection on a tray – to see, try out and select at leisure without any salesperson being involved! In-Store-TVs are the latest entrants and have contributed to a 20% lift in sales. Not just do they show ads specifically designed for the retail outlet, but also entertain shoppers. Hypercity has introduced digital signage in its consumer electronics section to help customers understand the various features of products. In its kitchen section, chefs demonstrate the use of the latest kitchen appliance and customers can even taste the dish – before deciding to buy the appliance which helped cook it.Shopping is being made more enjoyable. H&M, the Swedish clothing giant, has put flat screens behind the cash registers where people waiting to pay (often in very long queues) at the cash counter are kept entertained. Macy’s has flat screens, which show the football games each Saturday. While the wives shop, the husbands watch football. With 74% of buying decisions and 37% of brand switching decisions happening in-store, “In-Store-TV” has become a very powerful marketing tool today. Think of it… with more then 50 brands of toothpaste, 175 types of teabags, 285 types of cookies, 360 types of shampoos to choose from, which one will you pick? Probably the one whose ad you saw a few seconds back on the In-Store-TV, which not only entertained but informed too. Almost every retail chain is coming out with its TV. Future TV from Kishore Biyani group is going the Wal-Mart TV way in India. League One is another big player in this area. Decades ago, what started as signs on shopping carts has today grown to unrecognisable promotions. In-Store-Marketing is reaching new heights. The “Mall” is the medium for advertisers. Marketers are queuing up in front of them for this is their chance, rather their last (but not the least!) chance of getting to interact with customers.

Copyright ©:-Rajita chaudhuri and Planman Media

An Initiative of
IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

FAMILY MATTERS

The world is getting more and more virtual. Thanks to social networking and mobile phones, we are spending more time nurturing relations on-line than face to face. Most of the time, families aren’t ‘together’ even though they may be living under the same roof. Everyone is in their own world enjoying virtual company more than each other’s company. Small wonder that today people are increasingly realising the importance of family, even as they fight the 24X7 busy lifestyle.


Going the family way
A whole lot of marketers are flocking to the virtual world and marketing their products on various websites, but advertisers have discovered a new trend, a new way of attracting consumers. It’s the ‘family mantra’. With even children bemoaning the lack of family time, this is one theme which today is attracting consumers like never before. Everyone is frantically looking for some way in which they may squeeze in quality ‘family’ time into their busy schedules. And those who can show them how to, are assured of rich benefits.The original Xbox was targeted at hard core gamers. The brand endorser was the stereotypical young male dressed in black and living independently. That was six years ago, in 2001. Today Microsoft wants to position Xbox as a connector that brings people together. The positioning seems to attract more buyers and hence is more profitable to the company. They have realised that family games like ‘Uno’ and ‘Pac-man’; and less violent games like ‘Scene It? Lights, Camera, Action,’ have a bigger market than the hard-core violent games.Santro shot to popularity when Shah Rukh claimed “Hum Santro Wale Hai”, meaning the hatchback from Hyundai’s stable was the car of intelligent and smart families. Chrysler is now marketing its mini-vans with a new tagline – “Family room on wheels.” Toyota’s Innova was launched in India as a car with enough space for the whole family. After all, as Indians we prefer to do everything with the family in tow. Our trips and holidays are incomplete without pappa, mammi, daddu, mini, guddi & company, right? Surprisingly ‘family time’ is catching on in the rest of the world, too. After 9/11, people became far more introspective and family travel increased. Similarly, overburdened and guilty parents find it imperative to take kids along on vacations. All travel agents with vacation plans that include and entertain children, find their businesses booming now. Even an outdoor adventure oriented tour operator like Austin-Lehman, realised that families accounted for 50-55% of their business. Small wonder that most travel agents are now modifying and customising their packages (beach and lake vacations, theme parks, cruises) to accommodate kids. Panasonic decided to spend sometime, researching and finding inventive ideas to furnish fun and quality time for families. Its new punchline is “Bring back family time.” High definition flat TVs, which till now were marketed as symbols of success to young professionals, are today being marketed as a means of getting the family being together.Toys were either bought as gifts or to appease a yelling child. Well, not anymore. Today, toys that have been certified and approved by “Parenting Center Seal of Approval” sell more because – yes, you guessed it right - they help families spend more “family time.” Mattel introduced a game named “Chatter Matters” to encourage families to talk (chatter) and share their feelings about various topics (matter). The game would help parents communicate with their teenage children and help Mattel fight competitors.

Food-n-Family
A staggering 83% of parents today believe family dinners contribute to their child’s success in school. Yet only 70% manage to eat together four nights a week. Anyone offering them quality food with ‘family time’ thrown in as bonus, is catching their attention. McDonald’s, no more advertises its outlet as one only for kids. Its “I’m loving it” theme cuts across all age groups. To encourage entire families to come over, the QSR chain is now planning to put nutritional values as per age groups on the wrappers of each product. Domino’s realised that 70% of the orders were from families. So it announced its ‘fun meal for 4’ – after all, when families order together, they look for variety. Add to that, Domino’s value for money USP and the management is confident of keeping Pizza Hut away.Once restricted to just Hrithik and Aamir, Coke has moved ahead with times. Its new theme, the ‘Coke side of life’ is now about friends & families connecting & sharing. With the holiday season just round the corner - companies too are realising that making families eat together makes more money for them.

Families that sing-n-dance together
“It’s all about loving your parents” was how the very popular blockbuster Kabhi Khushi Kabhie Gham was promoted. Families flocked into theatres to cry, laugh and smile together with the actors on screen. Hum Aapke Hain Kaun broke many box-office records, as parents & grandparents continued returning to the theatres for more. Bollywood history is proof that nothing works like family films. The 1940s saw films like Ghar, Sansar et al, which were touted as ‘for women’ movies. Today, they have found a new avatar in Ekta Kapoor’s K-brand of telly soaps, which are giving every other serial a run for their money. If yesterday’s Baawarchi was hugely entertaining, then so is today’s Cars of Disney Motion Pictures.According to Movieguide, the percentage of family oriented films has risen from 6% in 1985 to 45% in 2002. G-rated films yielded the highest gross profits on an average, as compared to PG or R-rated films. After all, it makes more business sense to sell four tickets to a family than one ticket to a teen or adult!

Families of the future
Of course, ads emphasising family unity seem to be working well, but here’s a word of caution. The definition of ‘family’ is changing simultaneously. Parents of the future may have fewer children; or may not be married. Couples may be child-less by choice, many preferring to adopt. One needs to keep these factors in mind, while depicting families in advertisements.Companies like Ikea, J.C. Penny are already showing people of different skin colours and races – as a family. American Express showed a couple getting a call informing them that there was a child waiting for them in China. Kodak showed a Caucasian couple on an airplane holding an Asian baby. The caption, ‘The flight takes 12 hours, taking the picture takes 2.5 seconds.’As George Santayana once said, “A family is one of the nature’s masterpieces.” Marketers and advertisers can’t agree less. They are generating huge profits from ‘the family’! Just as ‘family packs’ of goods generate larger volumes of sale for companies, compared to small or regular size packs, similarly ‘family themes’ in ads captures more attention. Here’s a word for all those creative geniuses. While planning ad campaigns in future, don’t forget to include chacha, mausi, dada, nani, tau, pappu, chintu, mummy and papa... after all family does matter.

Copyright ©:-Rajita chaudhuri and Planman Media

An Initiative of
IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

NOT JUST A PRETTY FACE

A popular heroine can make the job of a marketer fairly easy & improve the visibility quotient for the actor too. But the campaign must be thought out & executed very carefully

there were security guards all around as a near stampede occurred in a shop on London’s Oxford Street. Women who had queued up for hours outside the store, indulged in catfights once inside. The reason – a pair of skinny jeans designed by supermodel Kate Moss. Moss, who in the past had often attracted disapproving headlines in the British press, does not seem to have lost her charm. Inspite of being nicknamed “Cocaine Kate” by the tabloid media after photographs of her taking the drug emerged, she has not lost her appeal. Rather, the “wild rebel image” seems to have increased her appeal as was evident on the day her clothing range was launched at Topshop on Oxford Street.The public seems to have a voracious interest in celebrities. Not surprising then that everyone is using star power to sell their wares.

Dress me up like her
The Indian retail market of readymade clothes seems to be flooded with only Bollywood heroines. Every manufacturer wants a pretty face to peddle its goods. Pantaloons roped in Lara Dutta for they felt the “fresh feel attitude” of the product could be bought out by the stylish actor. Globus made Kareena the face of its clothing line. They felt Kareena’s sense of style, charming and attitude suited the product.This trend started by companies like Provogue, which took Esha Deol (the Dhoom girl) to endorse their women’s wear – has now become a norm. Every new line of clothing or jewellery is today being endorsed by a Bollywood star. Levi’s Diva Jeans featured Sushmita Sen. It’s Red Tab slim jeans had Bipasha Basu showing off her curves. The latest star on the Bollywood skies – Deepika Padukone was immediately signed to promote Levi Strauss.The craze for a Bollywood actress is so much that J.Hamsptead, which is a men’s clothing line, announced Priyanka Chopra as its brand ambassador, hence highlighting the country’s fixation with Bollywood.World over, the heroines have lent their pretty faces to sell just about anything. In fact, the latest craze is “Celebrity Apparel Lines.” This time there seems to be a surge of celebrity endorsed clothing. Madonna came out with a clothing line for H&M. Apparently, sales increased by 17%. Jennifer Lopez launched her JLo apparel line at Macy’s and sales improved there too. Seeing their success, a lot of retailers have now started roping in stylish actresses to launch their respective fashion lines. American retailer Goody’s is launching a new line with Ashley Judd, Sarah Jessica Parker (of Sex and the City fame) launched her new line “Bitten” at Steve and Barry’s outlets. Our favourite celebrities have a great sense of style too and very often we feel that if we wear the products or clothes they endorse or design we might look like them too – as glamorous and lovely. No wonder, everybody is signing up celebrities for their advertising campaigns. After all, ad campaigns have changed in nature too. A sweet face is not enough. You need to have a terrific sense of style, great acting skills to look convincing in the advertisement - and no one does it better than a movie actress. From Chanel, to Christian Dior to Yves Saint Laurent to Versace, everyone is seen competing with each other in their bid to dress actresses at the Cannes International Film Festival. “People may not go out and buy the dress they see at Cannes, but being there targets a vast audience that will go out and buy the perfumes, the sunglasses or the ready-to-wear apparel,” says Valentino’s Chief Executive Michele Norsa. After all, it’s the celebrity circuit, which helped build the brand Versace. They dressed up the celebrities and all the girls dressed like them too!

You got my attention

Products like watches; clothes etc. are more or less similar of different brands. The only way they can really differentiate between each other is through innovative advertising. The easiest way to attract the attention of the audience is with the help of a familiar face. A celebrity does help one break through the clutter. However, it’s critical to have a good match between the product and the celebrity. Sarah Jessica Parker and her alliance with fashion retail chain Gap was short lived, since the image of two clashed. Parker is famous & liked for great looks, expensive – sometimes-not-practical-clothing. She is about high fashion while Gap is a no-fuss-non-descript clothing line. The endorsements failed. On the other hand a touched up old footage of Andrey Hepburn dancing to the tune of 1980’s AC/DC hit song “Back in Black” was a super success. The ad helped Gap launch its skinny black pants once again while keeping in time with the theme ‘Keep it simple’. Karan Johar and Kareena (a bad combination) failed to create any hype for Delux paints. Vijay Mallya and his Kingfisher Airlines is soon going international. Mallya has quickly roped in Deepika Padukone, who, after the success of Om Shanti Om is a very popular and loved face internationally.

Pretty ladies fight it out
They may be calling each other names and fighting in their private lives, but some of their fights are helping marketers reap rich dividends. Hero Honda Motors got former Miss World Priyanka Chopra to endorse its two-wheeler “Pleasure”. Kinetic Motors used Bipasha Basu for its upcoming Kinetic – SYM scooter. She would give the brand a modern & independent and stylish look. Long back, Preity Zinta had proved how her “zing” could launch a scooterette in India. She helped position TVS Scooty as stylish yet economical. You may have the technology, but to stand out, you need to dazzle and heroines are helping marketers do that! If Tag Heuer has Sushmita Sen & Longines has Aishwarya, then Titan needed Rani’s earthy girl-next door look to find a place for itself in the market. If Katrina Kaif’s lovely locks are due to Silk-n-Shine, then Head-n-Shoulders needed Kareena to fight the war of locks!

Where’ve the models gone?
Flip through any fashion magazine and you will see some or the other product being endorsed by a famous face. With cultures changing, lifestyles changing, ways of marketing & advertising are changing too. Advertisements featuring celebrities have higher recall – you need to handle it properly though.For actresses, it’s advertisements that provide more visibility than starring in movies, which are forgotten every Friday. After all, Yana Gupta is more known for the luscious lips she displayed for the Lakme campaign than any of her films. Esha Deol is more memorable in the Garnier advertisement than her movie Cash! Aishwarya is a beauty forever with the lovely Nakshatra advertisements! The advertising world is changing. Models are turning into heroines and heroines into models. Today, you need to have charisma, style, personality & a famous face to endorse a product, not just a pretty face!

Copyright ©:-Rajita chaudhuri and Planman Media

An Initiative of
IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist)

Saturday, June 28, 2008

Kamal Nath drives in FDI


IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES

Union CKamal Nath drives in FDIommerce and Industry Minister Kamal Nath has been selected as “Global fDi Personality of the Year” by the London based Financial Times’s niche magazine, fDi, (the premier bi-monthly publication that deals with business of globalisation). And why is that? Well! Because Kamal Nath has been a “tireless ambassador” in making India an attractive foreign direct investment (FDI) destination. Of course, he wasn’t alone in receiving this honour. Others who were part of this August League were Vincent Gadou Kragbe, CEO, VITIB, Cote d’’Ivoire (formerly known as Ivory Coast); Andrus Ansip, Prime Minister, Estonia; Sergio Fajardo Valderrama, Mayor of Medellin, Columbia; Khater Massad, CEO, Ras Al Khaimah Investment Authority; and Henry M. Paulson, US Treasury Secretary. The award was presented to Nath and the five other leaders at a function in New Delhi recently. Here is what fDi, the magazine, has to say about our honourableminister: Nath’s ministry“streamlined the process of investment, doing away with multiple approvals fromthe government and regulatory agencies... (under his leadership) new sectors, even politically sensitive ones, such as real estate and retail trade, which has in the past remained firmly shut to foreign investors, are being progressively opened up”. Direct foreign kudos for the Commerce Minister!

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Source :
IIPM Editorial, 2008

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review



Five star luxury gets costlier


When IIPM comes to education, never compromise

If Five star luxury gets costlieryou have some plans to enjoy the coming festive season, out of your house, in the cosy comforts of a lavish hotel, then just give this a look before moving out. From next month (October) onwards, five star hotels all over India will hike up their room rates by 15-25% across most locations. Some experts even feel that in popular holiday destinations like Kerala and Goa the hike could be as much as 30%, while in big metros like Mumbai and Delhi it could be around 25%. So, if someone was paying Rs.20,000 for a swanky suite in a fancy hotel in Mumbai, get ready to dish out Rs.25,000 from next month! Most hotels revise their tariffs around September-October every year. And this year, thanks to the mega shortfall in hotel rooms, spaces are going at a huge premium. The hotel industry has about 110,000 rooms; there is a clear shortfall of 150,000. Besides,given that business travel has been burgeoning lately, rooms are getting snapped up like never before. Time for India hospitality industry to seriously get its act together on the hotel rooms front!

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Source :
IIPM Editorial, 2008

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!



Friday, June 27, 2008

Markets face further correction

But would our markets face further correction? Ved Prakash Chaturvedi, Managing Director, Tata AMC, shared with us, “Over a short term, volatility in the Indian markets would persist. We have seen in the past that markets react to domestic issues like inflation, rupee appreciation etc. Looking at the current domestic political situation, it seems that some volatility can be factored in.” The one thing that markets will look forward to is the September quarter results summary; as sentiments thereafter would be driven more by fundamental performance. But Pathak of Lotus India does advice that the retail investor should take the Systematic Investment Plans (SIP) route for MF investments. An advice mirrored by Chaturvedi of Tata AMC. What is SIP? It simply means that instead of putting in a lump sum amount in one go, the retail investor – through SIP – can break up the MF investment over a longer term into, say, monthly investments, thus ensuring that the entry cost risk is averaged out over a longer term (thus lowering the risk). We’re sold on that already... Are you?

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Source :
IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Subprime market

But how is the US subprime market associated with the fall? Tridib Pathak, CIO, Lotus India AMC, affirmed to 4Ps B&M, “A weak US economy is having its implications on the US sub-prime housing market where there are rising defaults and foreclosures. And that has had its implications on mortgage backed securities in the credit markets all over the world. The shakeup in credit markets has in turn resulted in ‘risk aversion’ in credit markets in general. The fears are of US weakness turning into recession and a global slowdown. Due to linkages of all markets globally, India has also seen a correction in line with all global markets.” But the fact is that every correction provides stock-specific buying opportunities from the medium to the long term. Experts feel, it is im important to always stick to the basics, that is, growth and valuation, and on both counts, Indian markets are well placed. From a fundamental point of view, India’s economic and corporate profits growth is intact.

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Source :
IIPM Editorial, 2008

An urgent stock primer

A how-to guide on the state of affairs now...
What has the Bombay Stock Exchange got in common with Delhi? No, not the extinct Delhi Stock Exchange. But rather, Delhi’s transport services! If you’ve ever travelled some distance in the famed Delhi Transport Corporation buses, especially the private ones (now more famously known as Blue Lines), you’ll realize how a one hour journey – replete with painful shakes, ups, downs, jerks, and disastrous accidents – is an awesome training workshop for those intending to invest in the BSE, or for that matter, in the Indian stock markets! But what exactly caused all this downfall? An Indus Ind Bank spokesperson revealed to 4Ps B&M, “This time, the fall was caused due to the impact of adverse global cues arising out of US sub-prime lending and also the credit crunch experienced by banks in major markets; and further, the political uncertainties within India.” But what is ‘sub-prime’? Amit Saxena, CEO, Planman Financial, defined to us, “Sub-prime lending, for example, refers to loans given to borrowers with poor credit histories.”

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Source :
IIPM Editorial, 2008

Thursday, June 26, 2008

Hrtihik campaign and the gloomy World Cup

Talking about the campaign, Khazanchi asserts, “The underlying message for the campaign showing Hrithik with Pappe was to exhibit life as a joy ride with Tata Sky.’ Even today, after that Hrtihik campaign and the gloomy World Cup, Tata Sky continues tosport the same theme. “The latest TVC is a tribute to all our one million customers for the trust and support that they have shown in Tata Sky,” reveals Khazanchi who has chosen its new trio (Kiron Kher, Paresh Rawal and Boman Irani) to build on the same credibility it has in the customers psyche. The first million... a significant milestone for Tata Sky (with CAS also playing its bit in the process) as Kaushik reveals, “We were able to make greater use of CAS because we were the one’s who were the most prepared for it...” So where next? Well, the journey has just started as Tata Sky’s aims for a base of 8 million by 2012. A word of caution here for to reach that mark, counting on advertising alone would prove fatal. According to Kaushik, future drivers would be their customer service (a gold standard in customer service according to AC Nielson) & providing exclusive content. So ‘sky is the limit!’ in content too, eh?!

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Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

...and ‘IT’ conquered! The TV adventure of Tata Sky continues...

And the ads were made accordingly, to make people get up and take notice...” True it is – for its storyboards & aggressive advertisement strategy not just received attention, but well-served its purpose, comprehensively! And so it became a hot-property in the Indian market, generating enough curiosity... for Tata Sky was different! More importantly, this curiosity also created a sturdy platform for future advertisements. Rather than harping over its technology, Tata Sky resorted to showcasing features. The ‘Little Einstein’ ad took the center stage– an add which added the fun element to Tata Sky brand. “We have achieved 87% brand awareness in the first six months of our launch...” is what Vikram Kaushik, Managing Director and CEO, Tata Sky proudly reveals. He further informs that his company has always been aggressive as far as advertising was concerned and saw no reason to change in the future. Yet another feature that Tata Sky tried to showcase through its ads was the freedom to watch any match on TV from the ‘angle’ that viewers wanted... and it’s a no surprise that the timing was ‘bang on’ with the start of Cricket World Cup 2006! Then they handpicked another seasonal hit – actor Hrithik Roshan (who was then creating waves with his latest film releases) who spearheaded successfully its ‘Life Jingalala’ campaign.

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IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

‘IT’ came, ‘WE’ saw...

...and ‘IT’ conquered! The TV adventure of Tata Sky continues...
It was a promise to begin with... a promise to change the way television is viewed in India; or perhaps better, a strong resolution coupled with mountain-high purpose and toil... A year later and having gloriously surpassed the ‘million’ customer base milestone it has only left us remarking, “It said it could. It did it!!!” When Tata Sky ventured into the arena of DTH, as a 80:20 joint venture Between the Tata Group and Star Network, there were many ‘been here, tried that’ type players around (like the much-touted Dish TV from Zee’s stable and Direct TV from DD). However, the treatment they received in terms of customer (market) response was no less different than the manner in which local Indian washermen would beat dirtladen gunnybags! And while this painted a perfect ‘stay away’ market environment for players, Tata Sky proved why it was made of a different material – and cashed-in on this opportunity. They resorted to high decibel ads that screamed aloud – “Tata Sky has arrived!” Ashish Khazanchi, Executive Creative Director for Redifussion DY&R (agency behind the creation of these ads) told 4Ps B&M that, “One year back when Tata Sky was launched, we realised that it was a completely new platform.

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Source :
IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

‘IT’ came, ‘WE’ saw...

...and ‘IT’ conquered! The TV adventure of Tata Sky continues...
It was a promise to begin with... a promise to change the way television is viewed in India; or perhaps better, a strong resolution coupled with mountain-high purpose and toil... A year later and having gloriously surpassed the ‘million’ customer base milestone it has only left us remarking, “It said it could. It did it!!!” When Tata Sky ventured into the arena of DTH, as a 80:20 joint venture Between the Tata Group and Star Network, there were many ‘been here, tried that’ type players around (like the much-touted Dish TV from Zee’s stable and Direct TV from DD). However, the treatment they received in terms of customer (market) response was no less different than the manner in which local Indian washermen would beat dirtladen gunnybags! And while this painted a perfect ‘stay away’ market environment for players, Tata Sky proved why it was made of a different material – and cashed-in on this opportunity. They resorted to high decibel ads that screamed aloud – “Tata Sky has arrived!” Ashish Khazanchi, Executive Creative Director for Redifussion DY&R (agency behind the creation of these ads) told 4Ps B&M that, “One year back when Tata Sky was launched, we realised that it was a completely new platform.

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Source :
IIPM Editorial, 2008

Wednesday, June 25, 2008

Chief Minister of Uttar Pradesh

An engineering graduate from BVM College, Naik’s vision is to become a big player in the country’s nuclear energy sector where L&T already provides engineering, procurement & construction services. Known to be a true blue professional with high ethical values, Naik is on a mission to transform L&T into a globally known conglomerate. And finally, the Dalit queen, Mayawati who after becoming the Chief Minister of Uttar Pradesh for the fourth time has given a rude shock to corporate India. She has ordered the closure of all stand-alone retail outlets selling fruits, vegetables, et al, in her state – mainly Reliance Fresh and Spencers. The reason: these stores entice law & order problems. Recently, there were huge protests against Reliance outlets at Lucknow and the controversial BSP leader thinks that this move will save the livelihood of farmers who would otherwise suffer due to these upcoming retailers. A law graduate, Mayawati had also announced an agriculture investment policy for the benefit of farmers on August 3 (which allowed private companies to enter into a contract with local farmers, procure crops directly from them and open retailers centres). But the lady withdrew the policy on August 23, as she felt that farmers in UP were annoyed with the corporate farming clause. Now that’s what we call a 360 degree about turn! 4

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Source :
IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative


Global Gaints

An engineer by education, Rajendra is known to be the mind behind the administration, finance and shipping operations at Gokaldas. His decision making skills have taken his company to new heights. Today, Gokaldas boasts of exporting to various global giants like Banana Republic, GAP, Old Navy, Nike and Reebok, among others. With this Blackstone interest, it sure seems that Rajendra Hinduja’s global ambitions have received a much needed shot in the arm, in the face of problems due to a rising rupee and keen competition from other low cost nations. On the other hand, A.M. Naik, Chairman, Larsen & Toubro (L&T) has been busy laying down expansion & diversification plans for the nation’s largest construction and engineering firm. L&T has recently announced their plans to invest around Rs.400 crores ($4 billion) in a three million tonne alumina refinery based in Orissa, which will be a joint venture with Dubai Aluminium Company. L&T will have a 26% stake in this venture whose first plant with a 1.5 million tons capacity is expected to be functional by 2010. Further, the company intends to raise Rs. 2800 crore ($700 million) through a Global Depository Issue (GDR) to build a new shipyard. To ensure smooth operations, L&T will also develop a Special Economic Zone (SEZ) for the shipyard facility and another for engineering services.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Of capitalist dreams...

...and socialist compulsions!
The Manmohan Singh-Prakash Karat stalemate over the nuclear deal brought out the divergent views inherent in the Indian democracy. Similarly, the 4Ps B&M newsmakers this fortnight are all advocates of widely different economic agendas. Nevertheless, each of them have left an indelible impression on the Indian business world. First on our list is the Indian textile industry stalwart, Rajendra J. Hinduja, Managing Director, Gokaldas Exports. After achieving a whopping sales figure of Rs.1000 crore (Rs.10 billion), his company has attracted the world’s largest private equity fund, Blackstone’s interest. After considering a pool of textile companies, Blackstone recently zeroed down and picked up 50% share in Gokaldas Exports for nearly Rs. 660 crores (6.6 billion). In this regard Vivek Hinduja, CEO-Marketing, Gokaldas Exports told 4Ps B&M “This deal is not because of any problems in operations of our company, but funds are always welcome.” Besides, this deal will enable Gokaldas to tap vast opportunities globally and to also compete with well established Chinese companies, who are currently at the top in the global textile business.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, June 24, 2008

Offices across the country

The company currently has more than 450 offices across the country reaching out to more than 700 cities and towns.” In the general insurance segment, the months of October 2002 and May 2007 are two nostalgic moments for both HDFC and Chubb; for one marks their marriage and the other marks their divorce. At a time when the industry as a whole grew by 22.37% (the private sector recorded 60.39% growth in the same period), HDFC Chubb, amazingly was the sole company to post declines in premium income, which was down 7.59% to Rs.1.9 billion in 2006-07. Unquestionably, HDFC Chubb is the smallest company (market share less than 1%) besides being the worst performer in the general insurance industry. As of now, the premium collection up to the month of May 2007 stands at Rs.34.66 crores (a meagre 0.66% of the total industry wide premium collections) which goes on to reflect the stagnancy of HDFC. The figures provided by the insurance regulator, the Insurance Regulatory and Development Authority (IRDA) explicitly suggests that while companies such as ICICI Lombard (having premium collections to the tune of Rs.6.51 billion up to May 2007) and Reliance General Insurance (having premium collections to the tune of Rs.3.63 billion up to May 2007) are growing at 30- 40%, HDFC Chubb was actually not growing at all; reasons enough to guess why it is at the bottom of the league.

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Source : IIPM Editorial, 2008

Joint Venture

When joint ventures, mergers and acquisitions had become the flavour across HDFC, Chubb chose to estrange their joint venture on account of disagreements on business strategies. Having set forth the journey as a collaboration of two like minded companies committed to meet customers need, the entities have now turned bete noire, with clear intentions of pursuing individual goals. For that matter, HDFC Standard Life has not been going great guns; it has been skidding on the numbers front. Once upon a time in 2006-07, it occupied the number two slot, which it has lost to the more aggressive Bajaj Allianz. The premium underwritten for the company up to May 2007 stands at Rs.2.22 billion (constituting 9.76% of private collections; and 3.03% of the industry collections) as compared to ICICI Prudential and Bajaj Allianz whose premium for the same period stands at Rs.6.32 billion and Rs.4.08 billion respectively. Undoubtedly, HDFC occupies the coveted third slot. Yet, what is worth pondering over and a reason for concern is the remarkable difference in the premiums. The company is certainly working on the distribution issue. Sanjay Tripathy, Head Marketing, HDFC Standard Life, puts it to 4Ps B&M, “The year 2007-08 will see HDFC Standard Life expanding its geographical reach by opening new offices and increasing its financial consultants’ base.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

HDFC's Insurance business

Let’s analyse HDFC’s insurance business, which is going through the worst of times during perhaps the best of times for the Indian insurance industry. As per the statistics available, life insurance penetration in India is estimated at 4.1% of GDP, with per capita life premium at $33. Comparing this with Asian averages, which stand at 5% and $154; and global averages which stand at 4.5% and $330. It is but apparent that the Indian insurance industry has a long way to go. It is estimated that by 2014, the penetration of life insurance in India will increase to 4.4%; by 2009, the industry’s value would reach Rs.1,683 billion; and ASSOCHAM optimistically projects a 500% increase in the size of industry (from $10 billion to $60 billion by 2010). Thus, to capture the untapped market, insurance companies have partnered with global partners; the domestic partners provide the networks and brand equity whereas the foreign partners take care of the design of the insurance products. Ever since the industry got privatised, HDFC has been a top example of why the concept of first mover’s advantage remains useless. In the life insurance segment, HDFC Standard Life has been losing ground to ICICI Prudential (the undisputed numero uno) and Bajaj Allianz.

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Source : IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Monday, June 23, 2008

Freedom – at 60

India just celebrated its 60th year of Independence. Ever thought what’s the feeling about the country in this burgeoning market? Market trackers ACNielsen conducted an online survey across ll age groups and the findings reveal a positive outlook! For one, a patriotism amongst Indians is soaring with 89% of the respondents wishing to be reborn as an Indian. A majority (63%) of respondents elt that globalisation has been beneficial, with better employment opportunity perceived as the biggest benefit. Over 60% surveyed feel that globalisation will provide greater exposure to new technologies, improve standard of living and state of infrastructure in the country. Key areas where respondents think India has improved in the past six decades are Business and Commerce (57%), Science and Technology (43%), and Education (19%). But despite the significant progress, only 15% Indians feel that their quality of life has improved. One area where India’s poor performance is reflected is in the field of sports, with a paltry 1% feeling hat India has made progress on that front. As much as 50% felt that rich Indian culture is the most attractive factor for being proud to be an Indian. And the second factor that Indians eel good about is democracy: 19% respondents said they like to live in India for the reedom that they enjoy in the country. Now, that’s really patriotic!

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Source : IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative


Wednesday, June 18, 2008

Pretty Paradox

If you love flowers and you really want their presence to be felt, then this vase is the best display possible for them. It is made of glass and ceramics and thanks to Casa Paradox’s urge for innovation, their experimental shapes and contours that have nothing predictable about them. Priced above Rs.90,000, these vases promise to pose serious competition to the flowers!

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, June 13, 2008

The Namesake

With a penchant for accuracy and fresh original designs, Franck Muller’s titular watches are today among the most sought after time pieces. The 7880 Magic Hours 1 blanc watch has a magical white dial, which is set off by interesting blue-coloured hours, minutes and second hands. A smart black leather strap completes the look of this chic watch. Costing aboveRs.2,00,000, this watch is worth every rupee you spend on it, with a guarantee to set you apart from the crowd. Don’t think twice before picking it up, for time is ticking away!

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Source : IIPM Editorial, 2008


Wednesday, June 11, 2008

No doubt, it’s No doubt, it’s a hit and run case!

Results were a hit, but what is the future looking like? 4Ps B&M analyses...
It takes two and half to tango! To be precise, two and half years. An empirical research carried out by ICRA of rate hikes and its effects reveals that (ill)effects of hikes percolate after two and a half years of its implementation in the Indian economy. Just a quick recapitulation – the Reserve Bank of India (RBI) has raised borrowing costs nine times since October 2004! So you now know how to interpret these rate hikes, which has found few supporters and the rationale behind the hikes is still boomeranging all around. The fate of India Inc., which managed to capitalise well on the crest of India’s economic cycle, now hangs in balance, as fears of a possible trough in the economic cycle becomes eminently imminent. A survey conducted by Federation of Indian Chambers of Commerce and Industry on 418 companies showed business confidence index sliding to 69 points during the fourth quarter of 2006-07 from 75 points, as compared to the figure of 75.5 points during the same period of the last year. The business confidence of India Inc. fell on fears of falling demand for housing, construction and automobiles.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, June 10, 2008

The hall of fame

Going to the movies? Have you considered the options – Inox, PVR, Cinemax, Wave, Adlabs, Satyam… the list goes on. There was a time when watching a movie and popcorn centered on just getting to the nearest cinema hall showing the film. Nowadays, the culture has exponentially changed. Every consumer enters not a single screen hall, but is offered a plethora of choices in one place. You decide on various factors – the movies, food, seats, the different pricing for every show et al. You even decide whether you would like to be pampered like a baby in a relaxing Cinemax Gold/PVR Europa lounge with its super cushioned recliners. Who wants to go home, now? Interestingly, these are the various factors that have turned the traditional hall into a live brand with a host of differentiating factors. Multiplexes like Cinemax & Fun Republic even have loyalty cards that give you points for sharing your movie experience with them. It is, therefore, not surprising to see the sort of investments that the big guns are looking at. Reliance’s Adlabs has bought licenses for the Kanpur-based Rave Cinemas. This gets them instant access to 23 screens over Delhi/NCR, Haryana, Uttar Pradesh and Punjab. So from their current 62 screens, Adlabs has made the prudent choice of entering even Tier II cities and started establishing visible brands. “Consolidation in exhibition space & integration with production houses will lead to faster development of movie business & significant value creation,” states Ravi Sardana, Senior VP, ICICI Securities Ltd.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, June 09, 2008

Cigarettes and Alcohol

The winners in these two categories were predictable
Based on the methodology followed for the survey on India’s 100 most valuable brands, ICMR conducted a similar survey for the section on alcohol and cigarettes. The initial phase of the survey had 72 brands of alcohol and 24 brands of cigarettes. The parameters of brand awareness and recall were taken as the main parameters to short-list the number of brands to 25 brands of alcohol and 13 brands of cigarettes. These short-listed brands were then rated by consumers (non-smokers and non-alcoholics did not form a part of the survey) on a scale of 1-5 (where 1 is low and 5 is high) for the parameters of brand awareness, brand image/perception and brand loyalty. The survey was conducted in 5 cities (Delhi, Mumbai, Chennai, Kolkata & Bangalore) amongst 3000 respondents unlike other categories wherein the research was conducted in 9 cities. The survey revealed that Wills Classic, Wills Navy Cut and Gold Flake topped the consumer rating in almost all parameters with ITC very easily taking away 4 positions amongst the top 5. The survey for the alcoholic beverages category was conducted on 25 brands that were based on the same parameters. The alcoholic beverages were categorised into regular and premium segments based on the pricing (Delhi prices) of a 750 ml bottle.

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Source : IIPM Editorial, 2008


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative


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Thursday, June 05, 2008

AV BIRLA GROUP

Acquire, form JVs, merge or tie-up, but hurry up...
It is considered as one of India’s truly diversified companies, and KM Birla has never let his eyes go off from delivering value to its stakeholders. Be it cement, chemicals, fertilisers, financial services, telecom to the newest retail venture by the name of ‘More’, the group has shown its mettle in all sectors, which it has forayed into. “The mix of 3Ps – ‘Pedigree’ from Aditya Birla, ‘Passion’ from Kumar Mangalam Birla and ‘Professionalism’ from its employees has helped the brand achieve such recall,” says Jagdeep Kapoor, CMD, Samsika Marketing Consultants. Of late, the brand has even ventured into strategic tie-ups and acquisitions across sectors, in search for market leadership. From the long standing battle for the control of Idea cellular to the recent acquisition of the US based Novelis (for a whopping $6 billion), KM Birla knows when to strike. Unfortunately, the brand is still struggling to carve out a market leader status in any of its ventures.

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Tuesday, June 03, 2008

HIGHEST GAINER OF 2006-07:

• HDFC
Open a retail outlet under the brand name HDFC – and we assure you that it’ll be an investment par excellence. A name that houses trust, integrity and top-rated customer service – that’s brand HDFC for you! Indeed a deserving highest gainer for the year 2006, this brand, having grown to the monumental stature sans big budget commercials truly proves that ‘word of mouth’ is indeed the best mode of advertisement!

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Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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